CHOICE is urging the Australian government to make unfair contract terms illegal. Our existing unfair contracts legislation is not strong enough to stop businesses from including unfair terms in their contracts. Education and industry engagement have been largely ineffective in changing business behaviour and without strong deterrents, the law will continue to deliver adverse outcomes for consumers. It is crucial that the Australian government makes unfair contract terms illegal, and attaches appropriate penalties to businesses that breach the law.
CHOICE welcomes the recent extension of protections from unfair contract terms in insurance contracts. However, the government needs to go one step further in reducing consumer harm by making it illegal to include unfair contract terms in consumer and insurance contracts. This would mean that companies would face meaningful penalties for serious breaches.
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- Major insurers failing Australians with confusing "fire" cover (February 2020)
- Consumer advocates welcome Act implementing three key Banking Royal Commission recommendations (February 2020)
- 20,000 Australians demand the end of unfair insurance: Canberra (November 2019)